Staffing firms allow companies to fill temporary leaves of absences, work on one-time projects or fill full and part-time positions. Many of these workers qualify for benefits under the Affordable Care Act. Since implementation, staffing firms have greater employment benefits liability than before.
Employees working 30 or more hours a week now qualify for health insurance benefits. Failure to offer benefits to these employees could put the staffing agency at risk for a lawsuit from the employee and fines from the government.
The ACA made proper employee classification by staffing firms more important. Eligible temp employees can qualify for benefits they couldn’t before. The website www.wwspi.com/ details the benefits program that is available for employees. It comes with inherent risks of errors and omissions. The right liability insurance can help protect the company from these new risks.
The staffing agency can receive claims regarding employment benefits around the employee’s participation in the plan, benefits counseling or the way records were handled. Mishandled information or neglecting to inform an employee they are eligible or no longer eligible for benefits can create a situation that results in a lawsuit.
Employment benefits liability insurance protects a staffing firm from the increased liabilities of offering more employees benefits. A little protection can go a long way to protecting the financial assets while you continue to offer a valuable business service.